Under general purchasing power accounting,how is the gain or loss in purchasing power reported?
A)as a prior period adjustment to Retained Earnings
B)as an element of accumulated comprehensive income on the Balance Sheet
C)as an element of income in the current year
D)All of the above methods are acceptable under general purchasing power accounting.

Question

Quizplus · Accepted Answer

Under general purchasing power accounting, the gain or loss in purchasing power is reported as an element of income in the current year, reflecting the impact of inflation or deflation on monetary items.

Under General Purchasing Power Accounting,how Is the Gain or Loss